In the past couple of weeks, we've seen tech and data center stocks sell off big. Are these "dips" that will recover, or have we seen a major price adjustment that essentially resets the price of the stock?
For instance, IREN is down from early June high of 66/share to now 36/share. NBIS is down from June 276/share to now 190/share. Micron is down 1132/share in June to now 823/share. Rocket Lab 133/share in June to now 90/share. Marvel 310/share in June to now 187/share.
Is this the market realizing that these stocks were way overvalued? Or, is it a dip that is entirely recoverable in a month or two?
I'm trying to figure out what has happened and whether the recent sell-off represents buying opportunities or if it's the market coming back down to reality and realizing these stocks were way too high to begin with, kind of the "bubble" effect.
I keep hearing the words "market correction," but I don't know whether that means temporary dip or permanent repricing. If it's likely just a dip, then I'd think this would be a major buying opportunity.
By end of year, will virtually all of these stocks be back up to their June highs and maybe beyond? I know nobody knows for certain, but would welcome your thoughts on whether this decline is temporary or not.
Thanks!